Costing posting types

A posting type is used to clarify project processes and come from one of the following origins:

• Manual Registration
• Invoicing via Finance without a purchase order.
• Hours Registration.
• Direct Delivery.
• Delivery via warehouse.

The following list provides the transaction origin and the cost types:

Commitments

Costs

Manual Registration

Costs can be registered manually for all cost types. Commitments can be entered for all cost types except for Labor. The posting types are fairly simple. If the costs are processed, the Project Control posting type is found and if the costs are posted to history the same posting type is used. For commitments, the Soft Commitment posting type is found. For surcharges, the Surcharge Post to final unit cost is used to clarify the origin of the costs. If actual costs are available at a later stage, the costs can be linked to commitments via reconciliation. The costs replace the commitments.

Invoicing through Financials without a purchase order.

To work around the elaborate purchase procedure, you can enter purchases

directly on a project in Financials. The manually entered transactions from Financials are posted to the general ledger interim account, if the Extra WIP Entry in Finance check box in the Project Accounting Parameters (tpppc0100s000) session is selected. In the Transactions (tfgld1101m000) session, you can book costs manually for different projects. After processing these costs with the Post Transactions (tpppc4202m000) session the costs are booked to the general ledger account that is reserved for the specific project with the Integration Mapping Scheme (Project) (tfgld4102s000) session. The amount entered in the GLD interim account will be counterposted.

Parameter cleared

If the Extra WIP Entry in Finance check box in the Project Accounting Parameters (tpppc0100s000) session is cleared, no specific WIP account is reserved for the project and costs are booked to history and the general ledger WIP account for all projects.

Hours Registration

Hours registration is carried out in the hours accounting sessions of People. If you process the hours to Project, eventually the hours are found in history with posting type: Hours Registration. Subcontracting hours are linked to a purchase order. For this purchase order a remittance agreement must be defined (which you can check in Procurement) and a remittance agreement must be defined on the project (which you can check in Financials, module ACP). Subcontracting hours are not posted to the general ledger, but to Accounts Payable. In this Financials module, the number of spent hours on a purchase order is updated with the subcontracting hours. The subcontracting hours are posted to the labor cost history. Surcharges are not calculated for subcontracting hour transactions. Project history displays the succesful booking with the Subcontracting Hours posting type.

Direct Delivery

Every placed order or registered receipt for a purchase order can be a commitment, and is recorded in the commitment accounting system. In case of a direct delivery to a project, the corresponding invoice is entered and matched with the order. At that moment the commitment becomes actual costs. In case of delivery to a project warehouse a soft commitment in the project warehouse becomes a hard commitment after a purchase order is received in the warehouse. The hard commitment becomes costs if the order is issued by a project. If the financial transaction is performed in the warehouse and not in the project, you can make a correction on the warehouse value this will show in the value correction posting type. You can only use the value correction if the purchase order is not yet matched.

Delivery via warehouse

The same type of procedure as in Direct Delivery is valid if inventory in a project warehouse (commitment) is issued by the project (costs). The following cases results in a reverse commitments and, therefore, not

in cost transactions:

• Delivery to another warehouse.
• A return order.
• Or an adjustment order.